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At a time when predicting earnings for the next one year is difficult due to an uncertain demand scenario, Goldman Sachs has estimated Avenue Super mart's next 12 years earnings and has put the stock on the high-conviction list.

The multinational brokerage has valued the owner of D-Mart retail chain at 29 times its FY29 earnings at a market capitalisation of almost Rs 1 lakh crore, 44 per cent premium to the current market cap of Rs 69,698 crore.

The analysts at Goldman Sachs expect organised retailers to benefit immensely from the ongoing tax reforms and expect the share of organised grocery retail to more than double to 8 per cent by 2020.

DMart being the most profitable supermarket chain with focus on efficiency across value chain with lowest prices, costs and inventory price to the users should help it beat the competition from other online retailers. The share from online is expected to grow rapidly with analysts expecting the number of pick-up points to increase to 450 in the next three years.

Comparing DMart with is expected to benefit the most.The retailer has recently launched its online service platform 'DMart Ready' where it offers users free pick-up points from 41 pick-up points around Mumbai or home delivery at an added cost in Mumbai.

Its ability to offer best Walmart, the report estimates DMart to grow at an average of 24 per cent in 2020s, 14 per cent in 2030s and 9 per cent in 2040s. Its EBIT is expected to grow 13 times in the next 10 years.

On Tuesday, D-Mart shares gained 18.4 per cent following the report's release but pared some of the gains to close 8.6 per cent higher at Rs 1,116.8 on the BSE.